• Business - Economy
  • Updated: April 29, 2023

Implications Of A Weakening Yuan Against Dollar

Implications Of A Weakening Yuan Against Dollar


The weakening of the Yuan against the US dollar is a sign of a slowing Chinese economy.

This could have a negative impact on global markets, as China is a major player in the global economy. 

It is important to monitor the situation closely to see how it will affect other countries and markets. 

This development could also have a number of implications for China.

It could lead to an increase in the cost of imports. A major implication is a potential decrease in foreign investment, as investors may be less likely to invest in a currency that is weakening.

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 33 pips to 6.9240 against the dollar on Friday, according to the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.

The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

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